Obama: Greek crisis of 'substantial concern' for Europe

President Barack Obama says the Greek financial crisis is of "substantial concern" but should not prompt "overreactions".

Obama says he doesn't believe the crisis will deal a "major shock" to the American financial system, but adds that it's painful for the Greeks and could affect European economic growth.

He says that, in turn, it could have some ripple effects in the United States, such as reduced trade.

Greece and its European creditors were assessing a last-minute proposal Tuesday by Athens for a new two-year rescue deal submitted hours before the country's international bailout programme was due to expire and it loses access to billions of euros. Greece owes international lenders about $1.9 billion by the end of Tuesday but doesn't have the money to pay.